DOING BUSINESS IN CHINA:

The Human Rights Challenge

CONTENTS

I. INTRODUCTION
China: World Economic and Manufacturing Centre Why Are Human Rights so Important for International Business? Chinese Legislation: Gap Between Theory and Practice p. 3 p. 4 p. 6

II. SPECIFIC ISSUES AND RECOMMENDATIONS
1. Freedom of Association, the Right to Form and Join Trade Unions, and Collective Bargaining 2. Working Conditions 3. Discrimination 4. Forced Labour 5. Forced Evictions 6. The Rights of Children 7. The Right to Freedom of Expression and Information p. 8 p. 12 p. 16 p. 20 p. 23 p. 26 p. 29 p. 32 p. 33 p. 34 p. 37

III. GENERAL RECOMMENDATIONS TO COMPANIES IV. CONCLUSION V. LEGAL STANDARDS AND SOURCES VI. CONTACT ADDRESSES 2

I. INTRODUCTION

China: World Economic and Manufacturing Centre

Over the years China has become one of the largest economies in the world and the manufacturing centre of the world. Since the seventies, China has sought joint venture partners and encouraged technology transfer through foreign investment. Chinese firms are successfully manufacturing products on behalf of numerous foreign companies. The Chinese government provides massive contracts to foreign firms in order to build up the infrastructure required for its industrialization. Many companies establish distribution networks in China in order to benefit from the large home-market and increasing purchasing power of Chinese consumers. Last but not least, in 2008 China organized the first Olympic Games in its long history. However, businesses and governments around the world have overlooked China’s appalling human rights record. It is argued that business interests and requirements are unrelated to human rights, or that human rights are a political issue in which the private sector does not want to interfere. Although states have primary responsibility to respect, protect and